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What: Shares of engine maker Briggs & Stratton
So what: On an adjusted basis, Briggs & Stratton's quarterly per-share profit clocked in at $0.06, a penny ahead of analysts' expectations. So at least there was something for investors to cheer.
On the other hand, revenue for the quarter was $447.9 million, down 0.5% from the prior year and lagging the $458.7 million estimate from Wall Street. The soft top line reflects the continued tough operating environment for the company, as Briggs & Stratton CEO Todd Teske pointed out that "levels of consumer spending for outdoor power equipment continues to be challenging in the United States and in Europe."
Now what: To a large extent, it's a waiting game for the company and shareholders as both groups wait for some stronger signs of turnaround in the economy and the lawn-and-garden industry. In the meantime, though, the company is doing what it can to right-size its operations and cut costs. In conjunction with its earnings announcement, Briggs & Stratton announced that it's taking further restructuring actions that include moving operations, shutting down some facilities, and idling others. These aren't encouraging actions for investors that had expected a quicker turnaround, but the hope would be that this helps the company better navigate the tough times still ahead.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.